China: New order for passenger car by Geely & Volvo Cars

China: New order for passenger car by Geely & Volvo Cars

The Gnotec site in China bags a delightful new order with an annual volume of EUR 8 million.

The order involves pressed parts for a small category-A passenger car developed by the Chinese automobile manufacturer Geely in collaboration with Volvo Cars. Production in China for the two first models is set to kick off in 2017. Later plans are to build the car in Europe as well. Stefan Ottosson, CEO of Gnotec, is expecting follow-on orders: "Geely and Volvo Cars are planning to roll out five more models based on this platform. Chances are good that our business will expand both in China and in Europe."

China, a market with a promising future
As the world's second-largest economy, China produces over 15 million cars a year. Gnotec followed its European customers into this promising market because, in the course of their internationalisation drive, these had set up their business in China as well. The plant in Kunshan near Shanghai is specialised in automated pressing and welding. Customers include Volvo Cars, Autoliv, Kongsberg, Takata and Child Safety from Hong Kong. In 2014, serial manufacturing of pressed and punched parts for Volvo cars, i.e. Volvo S60L and XC60, was launched.

Figure:
Outside view of Chinese plant